courtesy Rocksource

Norway-based oil company Rocksource says it has entered the Gulf of Mexico fray by buying into Focus Exploration acreage, because the GoM is still a "petroleum mega-province” with 100 billion barrels of oil equivalent “to be discovered”.

Stock in Rocksource was up 4.6 percent on the news.

Armed with its controlled-source electromagetic survey equipment, Rocksource will start immediately on the planning of four wells targetting 280 million bbls of oil equivalent. Some 230 Bboe have been produced in the GoM, and Rocksource boss Trygve Pedersen said the time is right to move offshore Texas.

“This portfolio of leases adds to Rocksource growth potential,” he said in video address. He added that short-term and medium term wealth was now possible.

The farm-in deal will sea Rocksource pay $2 million for 10 percent to 30 percent stakes in eight licenses already showing 30 MMboe. With its in-house technology developers, Rocksource will analyse all survey work.

A first of four “low-risk” wells — some with tie-back “opportunity” — is planned by year-end 2009. Rocksource also acquires 5 MMboe in existing discoveries on the blocks.

Focus boss Don Crider, an experienced oil company leader, said he was excited about “the Rocksource expertise with electromagnetic data”, saying it would up the company’s ability to cut risk in the risky deepwater of the Gulf.

An indpendent oil company chief executive officer in the North Sea recently put down enthusiasm over electromagnetic technology once described as “pinprick” accurate. He called it “just another tool” in the search for oil and gas.

Rocksource, meanwhile, is producing little over a 1,000 boed from onshore Texas wells.

Tags: Rocksource ASA